The Flat Tax Alternative
Our current tax system is extremely inefficient. There are too many loopholes and too many regulations. Often times it hurts the very entrepreneurs and small businesses we need to help bring us out of the current economic downturn.
Frankly, I would like to see it thrown out and replaced with a tax code that adheres to three principles: It should be simple, fair and promote economic growth. Our current tax code meets none of those goals, and in fact it often times has the exact opposite effects.
There are several alternatives to the progressive model we now use. One is the flat tax. The flat tax essentially sets the percentage of your income that the federal government can tax – usually less than 20% in most proposals – to cover the costs of a limited government. You and your neighbor both pay the same percentage.
The flat tax has several advantages over the status quo. It eliminates the marriage penalty, the death tax and double taxation on investment and savings. There are no special interest deductions or loopholes. Getting rid of deductions, credits, and exemptions also helps solve the problem of complexity, allowing taxpayers to file their tax returns on a simple postcard-sized form.
The flat tax is by no means perfect. But it should be part of a national discussion on how we can scrap our current tax code and move to one that will benefit all Americans while facilitating the economic growth we all want to see.
Sincerely,
